France real estate investment continues to attract foreign buyers, as Belgians, British, Americans, and Norwegians remain active participants in the market despite a decline in 2024. Their substantial budgets and reasoned investment choices indicate a strategic approach to navigating the current challenges in the French real estate market.
The French real estate market experienced an overall decline, with sales volumes dropping by 11% according to Fnaim. However, this downturn did not deter foreign buyers, particularly from Belgium, the United Kingdom, the United States, and Norway, who remained active participants in the market. These buyers are making reasoned choices, often backed by substantial budgets, and are increasingly drawn to the allure of French properties.
Stability Amidst Decline
Despite the contraction in the overall market, transactions completed by non-resident foreigners remained stable, totaling an impressive €5.8 billion across nearly 15,500 transactions. This figure represents a notable segment of the approximately 775,000 total sales in France for the year. The resilience of foreign investment in the French real estate market underscores the ongoing appeal of the country as a destination for property acquisition.
Average Expenditure of Foreign Buyers
On average, international buyers spent €375,455 on properties in 2024, which is 63% higher than the average budget of French buyers, estimated at €230,286. This widening gap of 15% compared to 2023 indicates a growing appetite among foreign investors for exceptional, spacious, and well-located properties that are ready for occupancy. These buyers are not merely seeking luxury; they are focused on quality, character, and the uniqueness of their investments.
Negotiation and Investment Strategy
Interestingly, despite their higher budgets, foreign buyers are not inclined to overpay for properties. The negotiation rate for these transactions remains consistent with the national average of 8.8%, suggesting that these buyers approach their purchases with careful consideration and strategic planning. They prioritize investing in properties that offer a distinctive lifestyle and an inspiring environment, reflecting a thoughtful approach to real estate investment.
Nationality Breakdown of Buyers
Among the foreign clientele, Belgians and British nationals constitute a significant portion, accounting for about one-third of the total foreign buyers in France. Notably, 50% of these buyers, and 66% of British buyers, express a strong preference for France over other countries, with only 17% considering Italy, 15% Spain, and 14% Portugal as alternatives. This preference highlights the enduring appeal of the French lifestyle and culture.
Furthermore, a substantial number of foreign buyers are contemplating long-term residency in France, with 34% indicating plans to live in their purchased properties for ten to twelve months each year. This trend reflects a shift towards more permanent investments in the French real estate market.
High Budgets from Norwegians and Americans
While Belgians and British buyers dominate the foreign market, Norwegians and Americans are also making their presence felt, albeit in smaller numbers. These buyers tend to have the largest budgets, with average expenditures of €634,122 and €544,966, respectively. Their willingness to invest significant sums further underscores the attractiveness of the French real estate market.
Popular Destinations for Foreign Buyers
The most sought-after locations for foreign buyers include the Alpes-Maritimes, Paris, and Haute-Savoie, which consistently rank as the top three destinations. However, other regions such as Hérault, Var, Dordogne, and Pyrénées-Orientales are also gaining popularity among international investors, offering diverse options for those seeking to immerse themselves in the French lifestyle.
Despite the overall decline in the French real estate market, foreign buyers, particularly from Belgium, the UK, the US, and Norway, continue to demonstrate a strong commitment to investing in French properties. With substantial budgets and a clear preference for quality and character, these buyers are reshaping the landscape of real estate investment in France.
As the market evolves, the ongoing interest from international investors highlights the enduring allure of France as a prime destination for property acquisition. With a focus on exceptional living environments and a lifestyle that resonates with many, the French real estate market remains a compelling choice for discerning buyers from around the globe.
